Problem - Presented below is the balance sheet of Kishwaukee Corporation as of December 31, 2012.

KISHWAUKEE CORPORATION BALANCE SHEET DECEMBER 31, 2012

Assets

Goodwill (Note 2) $ 122,970

Buildings (Note 1) 1,640,000

Inventory 315,070

Land 950,000
Accounts receivable 172,970

Treasury stock (50,000 shares) 89,970

Cash on hand 178,870

Assets allocated to trustee for plant expansion

Cash in bank 72,970

Debt investments (held-to-maturity) 140,970

$3,683,790

Equities

Notes payable (Note 3) $605,940

Common stock, authorized and issued, 1,000,000 shares, no par 1,152,970

Retained earnings 860,970

Appreciation capital (Note 1) 572,970

Income tax payable 77,970

Reserve for depreciation recorded to date on the building 412,970

$3,683,790

Note 1: Buildings are stated at cost, except for one building that was recorded at appraised value. The excess of appraisal value over cost was $572,970. Depreciation has been recorded based on cost.

Note 2: Goodwill in the amount of $122,970 was recognized because the company believed that book value was not an accurate representation of the fair value of the company. The gain of $122,970 was credited to Retained Earnings.

Note 3: Notes payable are long-term except for the current installment due of $100,000.

Prepare a corrected classified balance sheet in good form. The notes above are for information only.